Accounts Payable (AP) automation is transforming how businesses manage invoices and payments. By eliminating manual tasks, companies can improve efficiency, reduce costs, and gain better financial control. As a MYOB partner, AlphaBiz Solutions provides MYOB Acumatica (formerly MYOB Advanced), a powerful ERP system, alongside ProSpend (formerly expense manager), an advanced AP automation tool, to help businesses streamline their financial operations.
What is AP Automation?
AP automation digitises and automates invoice processing, approval workflows, and payments. Instead of manually entering invoice data and tracking approvals, businesses can rely on automation to ensure accuracy, compliance, and faster processing times.
How AP Automation Works
Accounts Payable automation follows a structured process:
- Invoice Capture – Extracts invoice details using Optical Character Recognition (OCR) or AI.
- Matching & Verification – Compares invoices with purchase orders and receipts to ensure accuracy.
- Approval Workflows – Routes invoices for approval based on pre-set business rules.
- Payment Processing – Schedules and executes payments while syncing with ERP systems.
- Reconciliation & Reporting – Matches payments with bank statements and provides financial insights.
Why Businesses Need AP Automation
1. Increased Efficiency
Automated workflows reduce the time spent on manual invoice processing, allowing finance teams to focus on strategic tasks. According to the Australian Bureau of Statistics, businesses implementing AP automation can reduce invoice processing time by up to 70%, leading to significant efficiency gains and cost savings.
2. Cost Savings
According to a report by IOFM, it costs over $18 to manually process a single invoice, while it only costs less than $5 with an automated system. Aside from additional costs, manual processing takes an average of 14 days, meaning suppliers and vendors must wait nearly three weeks to receive payment. This delay can strain supplier relationships and result in lost early payment discounts.
3. Reduced Errors & Fraud Prevention
According to AP Now’s Internal Controls in AP Survey, 72% of businesses experience slow internal invoice approvals, and 27% report receiving duplicate invoices for at least a quarter of their transactions. AP automation helps eliminate these inefficiencies by reducing approval time, detecting duplicate invoices, and improving financial accuracy.
4. Better Supplier Relationships
Late payments can damage supplier relationships and lead to penalties. AP automation ensures on-time payments, allowing businesses to negotiate better terms and take advantage of early payment discounts.
5. Improved Cash Flow Visibility
Real-time dashboards and reporting tools provide businesses with a clear view of outstanding invoices and upcoming payments. This allows for better cash flow planning and forecasting.
Choosing the Right AP Automation Solution
Selecting an AP automation tool depends on business needs, invoice volume, and integration capabilities. MYOB Acumatica, combined with ProSpend, offers a seamless experience by integrating AP automation with core business functions, including finance, payroll, and project management.
Key features to look for in an AP automation tool:
- Seamless ERP integration – Ensures data flows between accounting systems and AP processes.
- AI-powered data extraction – Reduces manual data entry and improves accuracy.
- Customisable approval workflows – Speeds up invoice approvals based on set business rules.
- Secure payment processing – Minimises risks of fraud and payment errors.
- Comprehensive reporting – Provides financial insights for better decision-making.
Is AP Automation Worth It?
The return on investment (ROI) for AP automation can be significant. Businesses processing a high volume of invoices can see cost reductions of up to 80%, improved compliance, and enhanced financial control.
Get Started with AP Automation
If you’re looking to streamline your accounts payable, AlphaBiz Solutions can help. With MYOB Acumatica and ProSpend, we provide solutions tailored to your business needs.
Ready to optimise your AP process? Contact us today to learn how AP automation can transform your business.
